2007-02-19 03:18:46 · 8 answers · asked by Anonymous in Business & Finance ➔ Credit
It's when a company sells your debt to a professional collections agency. Say you owe Acme 100.00 and they have sent notices with no response. Acme doesn't have a collections department so to cut their losses they sell your debt to Smith for 80.00. You are now in third party collections and yes, you are still obligated to pay the full amount plus any fees and fines that were in your original agreement.
2007-02-19 03:25:54 · answer #1 · answered by Pretending To Work 5 · 1⤊ 0⤋
Hi!
However...third party collection agencies don't want to you to learn about the statute of limitations and see if this debt is "in statute" (they could sue you) or "out of statute"(they can''t sue you) to get this debt. Please..don't even talk to the collectors again without learning about the statutes of your state...and if they apply to this. Also...under no circumstances agree to a repayment plan or send them even one payment..in most cases it restarts the clock...even if the debt was originally out of statute.
Now..I'll be honest..I'm not encouraging people not to pay their bills. Let's be real here. Acme has taken a tax writeoff on their taxes and got credit for it. Also...you should be aware that third party collectors pay only 1 cent on a dollar value..sometimes even less.
Please...learn your rights. Check the debt statutes of the state you are in. Take a look at the Fair Debt Collections Practices Act and make sure they are not breaking the law. If they are...complain (as I did) to the FTC. I recommend people to file complaints against the company not only with your own state's Attorney General...but also with the one where the company is located. I know a bit more about this than most..because a few years ago..I was a consumer advocate...and quickly learned some do nothing..others really do act..even on one complaint.
You can also file with BBB as well. Again..same deal. Some are good..some don't even followup. I am happy to report the Atlanta BBB is much better than it used to be...and so many have improved as well.
You may even be able to sue *them* for this...check with your lawyer.
2007-02-19 04:21:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Third party collections is a 3rd party collecting a debt.
Lets say you owe a cell phone bill. The cell phone company determines that you're not going to resolve your debt with them in a reasonable amount of time and they send your account to a collection agency that works for them. That collection agency is the 3rd party collector for your debt.
2007-02-21 12:17:40 · answer #3 · answered by siren381 2 · 0⤊ 0⤋
A company that collects debts for another company. There are not the company (1st party), the customer (2nd party), so they are the 3rd party. That is where the name came form . Sort of like speaking in the 3rd person.
2007-02-19 05:35:53 · answer #4 · answered by Anonymous · 0⤊ 0⤋
To put it simply - anyone who attempts to collect a debt on behalf of another. Collection Agencies and lawyers for example. .
2007-02-22 05:28:06 · answer #5 · answered by JD 2 · 0⤊ 0⤋
when the original creditor can't get their money from u they forward the acct# to an outside credit collection agency who then sends u threatening notices for you to pay the debt and eventually it goes on ur credit report...
2007-02-19 03:30:14 · answer #6 · answered by Queen D 5 · 0⤊ 0⤋
I think it is a Creditor sent after your past due account that you have not paid.
2007-02-19 03:23:42 · answer #7 · answered by Feline05 5 · 0⤊ 0⤋
The repo guy.
People who would get your TV if you cant pay your credit card.
2007-02-19 03:23:01 · answer #8 · answered by digileet 2 · 0⤊ 1⤋